Exercise 152 Part Level Submission Stine Company uses a job

Exercise 15-2 (Part Level Submission) Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,400 and two jobs in process: Job No. 429 $2,100, and Job No. 430 $1,300. During May, a summary of source documents reveals the following Materials Requisition Slips Labor Time Tickets Job Number 429 430 431 General use $2,000 3,100 7,700 $2,600 3,600 4,500 $10,700 900 $11,600 $12,800 1,300 $14,100 Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month

Solution

Debit Credit Work in process inventory 10,700 Manufacturing overhead 900 Raw material inventory 11,600 Work in process inventory 12,800 Manufacturing overhead 1,300 Factory labor 14,100 Work in process inventory 7,680 Manufacturing overhead 7,680 (12,800*60% Finished goods inventory 7900 Work in process inventory 7900 (2100+2600+2000+60%*2000)